SBI Capital Sprints Up the Bond Sales Ladder
Mumbai: State Bank of India’s investmentbankingarmdoesn’tattract half as much attention as it ought to, being a unit of the nation’s biggest lender, but all that is changing fast.
During the January-March quarter last financial year, SBI seems to have broken several records by climbing 12 notches in the bond sales charts, beating even private sector rivals such as ICICI and HDFC Bank. It’s now ranked second only to Axis Bank, show data from Bloomberg India bonds league table.
“A combination of private and public bond issuances have helped us boost our performance,” said Varsha Purandare, CEO, SBI Capital. “The tax-free bonds, in particular, gave op- portunities to arrange more bond sales. Bond investment appetite was quite good last year.” The investment banking arm has arranged 51 bond sales worth ₹ 15,031 crore, gaining significant market share at 15.3% against 2.7% a year ago when it was ranked 14. State-owned companies raised more than ₹ 40,000 worth of tax-free bonds last financial year, where investment bankers such as SBI Cap participated actively along with other major arrangers.
Axis Bank retained its top slot with 79 deals valued at ₹ 18,024 crore. The third-largest private sector lender by asset size, too improved market share to 18.4% compared with 15.6% during the same period last year.
In the past years, according to some market participants, SBI Cap was Top Six (Jan-Mar Qtr) Axis Bank SBI* ICICI HDFC Bank AK Capital Edelweiss Fin *SBI is SBI Cap 18.38 15.33 12.49 6.2 5.55 5.4 Market Share (%)
seen as a laggard in the league table, at least for bond sales, as it was seen as a sluggish organisation, being part of the public sector lender.
Of late, things appear to be changing with a new managing director at the helm. In the past one year, SBI Cap has hired some senior people working with private sector biggies.
“Not being a private player sometimes appears to be disincentive for us as we need to go the extra mile to convince our clients,” Purandare said. “We have now proved our efficiency standard.”
Some of the bond issues arranged by SBI Cap include Nabard, IRFC, NTPC, Dalmia Cement, Piramal Enter prise NHAI, Indiabulls Finance and others.
“SBI Cap was one of our investment bankers for tax-free bond sales,” Amalor Pavanathan, deputy managing director at National Bank for Agriculture and Rural Development. We have received some positive feedback about them from markets before they were appointed via the bidding process. Services offered were as per market standard.”
Bond Sales League